On Friday, the Massachusetts Attorney General sued a unit of Ocwen Financial Corp for allegedly engaging in abusive practices. Massachusetts Attorney General Maura Healey stated that Ocwen Loan Servicing LLC charged homeowners for unnecessary forced-place insurance policies and charged delinquent borrowers with excessive fees.
In the midst of this, Tripp Levy PLLC announced on Monday that a class-action lawsuit has been filed by a class of investors who purchased or acquired Ocwen securities. These investors seek to recover compensation damages caused by Ocwen’s violations of the Securities Exchange Act.
Tripp Levy PLLC stated that Ocwen “made materially false and misleading statements regarding the Company's business, operational and compliance policies.” The firm claims that Ocwen “engaged in significant and systemic misconduct at nearly every stage of the mortgage servicing process” and Ocwen will be subject to scrutiny.
According to Tripp Levy, Ocwen has made public statements to its shareholders that were false and misleading. The firm stated that the deadline for investors to make their claim is approaching, and those that purchased shares of Ocwen during the period between May 11, 2015 and April 19, 2017 are encouraged to contact the firm soon.
Additionally, Owen is involved in a claim filed by the Consumer Financial Protection Bureau which says that servicing failures within the firm had harmed borrowers. Ocwen has denied the allegations. The firm filed two emergency motions requesting the immediate court action restraining the cease and desist order brought by the Illinois Department of Financial and Professional Regulation, Division of Banking and the Commissioner of Banks of the Massachusetts Division of Banks.
“Under these circumstances, Ocwen has a responsibility to its customers, shareholders, and employees to vigorously defend the Company,” Ocwen said in a statement.